How the Kaufman Efficiency Ratio Improves Ichimoku Strategy Performance by Avoiding Noise

Рет қаралды 7,742

Күн бұрын

The implementation of a noise filter such as the Kaufman Efficiency Ratio with a trading strategy can have a dramatic effect on performance. This video shows the improvement with a simple Ichimoku Tenkan-Kijun crossover signal. How does it do this? Avoiding noise means that trend-following strategies are less likely to be impacted by whipsaws, with the ratio of profitable trades to whipsaws increasing.
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#NoiseFilter, #KaufmanEfficiencyRatio, #HowToAvoidWhipsaws, #IchimokuIndicator, #TradingStrategy, #TechnicalIndicators, #WhichTechnicalIndicatorsWork, #ImprovingTradingStrategyPerformance, #Whipsaws, #TenkanSen, #KijunSen, #MartynTinsley, #Darwinex, #DarwinexSeries
This is Episode 12 in the Darwinex 'Spotlight on Trading Indicators' Playlist: • Spotlight on Trading I...
Link to Price Action Noise and The Kaufman Efficiency Ratio Videos: • Understanding Market N...
Video Contents:
00:00 Implementing a Noise Filter with Ichimoku
00:11 Why Darwinex?
01:00 The Kaufman Efficiency Ratio Indicator
02:57 Kaufman ER Calculation
04:52 Kaufman ER Parameters
06:44 Backtesting in the MT5 Strategy Tester
09:01 Summary and Next Episodes
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Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk Disclosure: www.darwinex.com/legal/risk-d...

Пікірлер: 29

@kxng_kav5534 Жыл бұрын

You are creating generations of quality content; somehow I feel your content is being misinterpreted by many and comprehended by a few, thanks alot I appreciate Darwinex

@Darwinexchange Жыл бұрын

Firstly thank you. And yes I agree, it seems to be that maybe more discerning traders are the ones that are getting more value, and less so from the masses who are after a quick win (which ironically are the people that really need to watch!). Hopefully over time, more and more will come on board. Thanks, Martyn

@modisekemelo3760 Жыл бұрын

This is indeed interesting, have been following the series with keen interest, I must say you really know what you are doing. Very insightful indeed... 👌👌👌👌

@Darwinexchange Жыл бұрын

Many thanks Modise! Martyn

@kriordan25 Жыл бұрын

Thanks Martyn Judging by the quality of the comments the idiots are not watching you because you are not using the clickbait Well done

@Martian4x Жыл бұрын

Thank you, Martyn.

@XaviAndreu Жыл бұрын

Perfectly explained, congratulations.

@Darwinexchange Жыл бұрын

Many thanks!

@ianl4882 Жыл бұрын

Love your work!

@Darwinexchange Жыл бұрын

Thank you!

@perthbusiness Жыл бұрын

Anything that improves the ratio of wins is a good thing, and this is a good strategy.

@Darwinexchange Жыл бұрын

Thanks for the feedback John. Martyn

@GascanNBK Жыл бұрын

Great Job

@Darwinexchange Жыл бұрын

Thanks!

@kxng_kav5534 Жыл бұрын

I'll be joining soon but first I need a bit of help in my endeavours

@FernandoLopez-vc2ld Жыл бұрын

Thank you a lot by sharing. I made a back testing with this stategy in python with some assets an then I optimize the parameters, but I forget to put the financial costs for every transaction, Do you have a video where explain this? Thanks in advance.

@PuhuTube Жыл бұрын

Strategies should incorporate some form of volume data to predict momentum right and to be consistent, I mean real volume data, not tick frequency or price level utilization or something but I know it is almost impossible especially for derivative markets.

@kylemaharaj9563 Жыл бұрын

This is truly an exciting series! Do you also include a time of day, day of week, maximum position holding time, and news filter?

@Darwinexchange Жыл бұрын

Hi Kyle, these are all thinks I use myself yes, but I won't be covering them in this series that much. This series is about analysis of individual indicators. But if you proceed and incorporate some of these additional rules with Ichimoku, then please share your results. I and others would be interested to hear. Thanks Martyn

@fancynaij2945 Жыл бұрын

Brilliant. Thanks for another great video. I've been thinking about KER as a noise* filter so this is v. helpful. Question: how would one determine the points of the KER that are below 75%? Would that be via calculating the 25th percentile value?

@Darwinexchange Жыл бұрын

Hi Fancy. In this exercise I did it visually by looking at many charts. But an alternative would be to write out the data programmatically and perform an accurate calculation. Sometimes, visual is enough. Thanks Martyn

@ikamanu Жыл бұрын

Fantastic video. Question: Where you are looking at all the KER(10) data points to determine the 75%-25% threshold, how many points are you looking at? KER values for the entire year? The last few months? Thanks in advance.

@Darwinexchange Жыл бұрын

Hi. The 75/25 is based on my experience of trend following systems where typically you get 3-ish whipsaw trades for every successful trade. But the successful trade needs to recover the losses from the losing trades plus make additional profit. This is typical for trend following strategies: many small losses and a small number of larger winners. Hope that explains. Martyn.